Are there Capital Gains Tax exemptions or discounts available to me when selling my home on the Gold Coast?
Can I Get a Capital Gains Tax Exemption or Discount When Selling My Home on the Gold Coast?
If you’re selling a property on the Gold Coast, you might be wondering: Do I need to pay Capital Gains Tax (CGT)? Or can I avoid it? The good news is, in many cases, you might be exempt or eligible for significant discounts, especially if the home was your main residence.
Let’s break down how CGT works in Australia, when it applies, and what exemptions or discounts you may qualify for as a Gold Coast property seller.
What Is Capital Gains Tax (CGT)?
Capital Gains Tax is the tax you pay on the profit (the capital gain) when you sell an asset, like real estate, for more than you paid for it. In Australia, CGT isn’t a separate tax but is part of your income tax. It’s triggered when you sell:
- An investment property
- A holiday home
- A home that wasn’t always your main residence
- A property used for income (e.g. Airbnb or home business)
But there’s one huge exception…
The Main Residence Exemption
If the property you’re selling on the Gold Coast is your main residence, the home you lived in most of the time, you’re likely exempt from paying any CGT on the sale.
To qualify for the full main residence exemption, you must:
- Have lived in the home as your primary place of residence
- Not used the property to produce income (e.g. rented it out) for a substantial period
- Not have claimed another property as your main residence during the same time
- Be an Australian resident for tax purposes
So, if you’ve lived in your Gold Coast home from the time you bought it until the day you sell it, you likely won’t pay CGT at all.
What if I Rented the Property Out for a Period?
If you lived in your property, then moved out and rented it out, you may still qualify for a partial exemption under the 6-Year Rule.
The 6-Year Rule (ATO)
If you move out and rent the property, you can still claim it as your main residence for up to six years, and avoid CGT during that time, provided you don’t claim another main residence.
- You must have lived in the property first
- You can only use the 6-year rule if you sell within 6 years of renting it
- If you move back in and reset the clock, the rule applies again
This is particularly useful for homeowners who have temporarily relocated for work or investment reasons.
What If I Used My Gold Coast Property for Business or Airbnb?
If part of your home was used to generate income through Airbnb, a home office, or a business space, you may only get a partial CGT exemption.
For example:
- If 20% of your home was used as a business office, then 20% of your capital gain may be taxable.
- If you rented it for part of the year, only that portion will attract CGT.
You’ll need to calculate the time and space that was used for income and pay CGT proportionally.
CGT Discount for Long-Term Ownership
If you don’t qualify for a full exemption, you may still be eligible for a 50% Capital Gains Tax Discount if:
- You’ve owned the property for more than 12 months, and
- You’re an Australian resident for tax purposes
This discount applies to investment properties, holiday homes, or properties that partially qualify for exemption.
So, if your capital gain is $100,000, you’d only pay tax on $50,000 of that amount.
Examples for Gold Coast Sellers
Example 1: Full Exemption – Sarah bought a home in Burleigh Heads in 2015, lived in it continuously, and sold it in 2025. She’s exempt from CGT.
Example 2: 6-Year Rule – Jack bought a townhouse in Southport, lived in it for 3 years, then rented it out while working interstate for 5 years. He sells it within that time. He doesn’t pay CGT, thanks to the 6-year rule.
Example 3: Partial Exemption – Lisa used her Mermaid Beach house as an Airbnb for 2 years after living in it. She must pay CGT for the portion of time it was rented out, but she’s eligible for the 50% CGT discount.
What Records Should You Keep for CGT Purposes?
Even if you think you qualify for an exemption, you must keep these records:
- Purchase and sale contracts
- Property settlement statements
- Receipts for capital improvements
- Rental income and expenses (if applicable)
- Dates you moved in and out
- Business use or Airbnb rental history
Your accountant or solicitor will need these to calculate any exemption, partial exemption, or discount.
Do I Need to Declare the Sale on My Tax Return?
If your home was fully exempt, you don’t need to declare it on your tax return.
If any part of the property was used to generate income, or if you’re selling an investment, you must:
- Declare the capital gain
- Apply any discount or exemption
- Pay CGT based on your marginal tax rate
Should I Speak to a Tax Advisor Before Selling?
Absolutely. Even though I’m not a tax agent, I always recommend that Gold Coast property sellers get personalised advice, especially if:
- You’re selling an investment or holiday home
- Your property was ever rented
- You’ve owned multiple properties
- You’re a foreign resident or non-resident for tax purposes
A registered tax advisor can help you legally reduce your CGT liability.
Thinking of Selling? Let’s Maximise Your Outcome
Understanding CGT is just one piece of the puzzle when selling your Gold Coast property. From legal compliance to smart marketing and price strategies, I’m here to help you achieve a smooth, stress-free, and profitable sale.
✅ FAQs
1. Will I pay CGT when selling my family home on the Gold Coast?
If it’s your main residence and hasn’t been used to generate income, you likely won’t pay any CGT.
2. What if I rented the house out for a few years?
You might still qualify for the 6-year exemption rule—talk to your tax advisor.
3. Can I get a discount on CGT if I’ve owned the property for a long time?
Yes, if you’ve held the property for over 12 months, you may be eligible for a 50% CGT discount.
4. Do I need to report the sale of my property to the ATO?
Only if part of the property was used for income, or it wasn’t your main residence.
5. Can a tax advisor help me reduce my CGT liability?
Yes, especially if your property was rented, used for business, or shared between personal and income use.
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A lower fee might seem attractive, but it can mean less marketing, fewer inspections, and missed opportunities. Understanding Gold Coast real estate commission rates isn’t just about cost—it’s about return on investment. Want a breakdown of what you’re paying for and how to ensure maximum value? Discover what commission really means for your sale—and how to get SOLD for the best possible price.
Author – Craig Douglas
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
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This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight”.
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